Is digital a help or hindrance to the high street? New research suggest that technology is offering shoppers a more mobile-friendly shopping experience in-store, helping retailers unlock an extra £200 million in sales each year.
The research, from RetailMeNot, the operator of VoucherCodes.co.uk, indicates that although smartphones are increasingly used on all stages of their shopping journey, when it comes to payments most Brits are still sticking to cash or card to pay.
UK shoppers spent just £17.24 million via mobile payment services in-store last year.
The research also found:
• mobile vouchers helped to drive £189.62 million in sales in UK stores last year
• 44% of shoppers in the UK are willing to spend more in mobile-friendly stores
• Half of Brits admit to ‘showrooming’ – using their mobile or tablet in-store to investigate product reviews or competitive prices
• over a third (35.6%) of ecommerce spend in the UK expected to be carried on a mobile this year device this year
Although smartphones are increasingly used on all stages of their shopping journey, when it comes to payments most Brits are still sticking to cash or card to pay. UK shoppers spent just £17.24 million via mobile payment services in-store last year. Although this is almost twice as much as shoppers in France (£9.6m) and Germany (£9.6m), it pales in comparison compared to the US, where shoppers spent £173.23 million in-store in 2015.
However, shoppers don’t appear to be afraid to use their mobile device at the till, with mobile vouchers proving to be increasing popular. The study found that mobile vouchers helped to drive £189.62 million in sales in UK stores last year. Comparatively, shoppers spent £125.74 million using mobile vouchers in France, £105.54 million in Germany, and £591.58 million in the US.
While half of UK consumers have admitted to ‘showrooming’; using smartphones or tablet devices to investigate reviews, product information and prices whilst in-store, research by RetailMeNot shows that 44% of shoppers in the UK are willing to spend more in mobile-friendly stores. [2] By improving the experience of mobile shoppers in-store through offering services such as mobile reservations, loyalty programmes, vouchers and payments, high street stores could unlock £7.8 billion in additional sales.
While mobile is increasingly used to purchase online, with over a third (35.6%) of ecommerce spend in the UK expected to be carried on a mobile this year device this year, [1] smartphones are also an extremely effective – and as yet under-utilised – tool for driving footfall into physical retail stores. Consumer preferences for mobile-oriented facilities in stores included loyalty schemes held on mobiles (40.4%), mobile payment options to avoid queuing (36.7%), apps to order food and drink ahead of arrival (35.8%) and alerts for discounts available in the area (34.3%).
By using a combination of geo-fencing capability, email outreach and additional visibility through media and social networks, retailers can maximise the impact of mobile to promote their offers to influence consumers for their high street shopping. In the UK, RetailMeNot brand VoucherCodes.co.uk is working with retailers to deliver location-based mobile marketing campaigns.
VoucherCodes.co.uk has been working closely with chocolatier Hotel Chocolat to drive sales both online and in-store. Initially an online retailer, Hotel Chocolat has now opened over 80 stores in the UK recognising that a majority of retail sales still happen on the high-street. Through VoucherCodes.co.uk, Hotel Chocolat has been able to send targeted promotions to 8 million high-intent shoppers and 4 million app users allowing them to redeem those offers both online and in-store. Results showed that up to a third of customers chose the high-street, illustrating the strength of digital channels to drive footfall into stores.
Michelle Corp, Online Trading Manager at Hotel Chocolat, said: “Hotel Chocolat has always recognised the importance of digital channels – and ever more importantly mobile– to drive footfall into stores. Multichannel promotions have proven a very effective way of encouraging discovery of our product range and brand experience, not only online but also in-store. As the shopping journey becomes more complex, we are committed to allowing customers to shop as and where they want and ensuring consistency of message and experience.”
Severine Philardeau, Vice-President Retail and Brand Solutions at RetailMeNot, added: “Mobile has become an integral part of the shopping experience, both in-store and online. Shoppers now flit between multiple channels throughout the shopping journey, using a smartphone or tablet to browse, research, and make purchases via apps, mobile websites and payment in-store. Faced with this increasingly complex environment, mobile offers retailers the opportunity to enhance the shopping experience and to drive repeat sales across all channels. New technologies such as geofencing can help to capture customers through targeted offers while they’re out shopping on high street and guide them in-store. Forward-facing retailers are now rethinking the shopping journey with mobile at the centre and they see the broader potential of mobile technologies beyond the mobile transaction. ”